Urban Outfitters, Inc (URBN) has reported an 8.92 percent fall in profit for the quarter ended Oct. 31, 2016. The company has earned $47.36 million, or $0.40 a share in the quarter, compared with $51.99 million, or $0.42 a share for the same period last year. Revenue during the quarter grew 4.51 percent to $862.49 million from $825.26 million in the previous year period. Gross margin for the quarter contracted 15 basis points over the previous year period to 34.77 percent. Total expenses were 91.85 percent of quarterly revenues, up from 90.27 percent for the same period last year. That has resulted in a contraction of 158 basis points in operating margin to 8.15 percent.
Operating income for the quarter was $70.30 million, compared with $80.32 million in the previous year period.
"I am pleased to announce our teams delivered record third quarter sales," said Richard A. Hayne, chief executive officer. "These results were driven by the third consecutive quarter of positive Retail segment 'comps' and continued strength in our Wholesale segment," finished Mr. Hayne.
Working capital increases marginally
Urban Outfitters, Inc has recorded an increase in the working capital over the last year. It stood at $484.79 million as at Oct. 31, 2016, up 3.29 percent or $15.45 million from $469.34 million on Oct. 31, 2015. Current ratio was at 2.20 as on Oct. 31, 2016, down from 2.24 on Oct. 31, 2015. Cash conversion cycle (CCC) has decreased to 17 days for the quarter from 51 days for the last year period. Days sales outstanding were almost stable at 7 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 37 days for the quarter compared with 71 days for the previous year period. At the same time, days payable outstanding was almost stable at 27 days for the quarter, when compared with the previous year period.
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